 |
BY JONATHAN BLUM, KAGAN
Rupert Murdoch paid a premium for DirecTV. Comparing per-sub valuations from the day before the deal to the day it was announced shows that News Corp. will pay about 27% above GMH's trading value. The big question: What does $1,672 per subscriber do to other network operators' valuations?
NEWS CORP/GMH COMPARATIVE VALUATION
| GMH |
4/9/03 |
News Corp. Deal |
| Share Price |
$11.48 |
$14.00 |
| Net Debt (Mil.) |
$1,584 |
$1,584 |
| Adjusted Cap (Mil.) |
$13,783 |
$17,374 |
| YE '02 Subs@ (Mil.) |
9.5 |
9.5 |
| Trading Value Per 2002 Sub |
$1,451 |
$1,829 |
| Proj. '03 CF (Mil.) |
$1,260 |
$1,260 |
| 2003 Trading Multiple (x) |
10.9 |
13.8 |
| Proj. ?03 Subs (Mil.) |
10.4 |
10.4 |
| Trading Value/?03 Subs |
$1,321 |
$1,672 |
| SOURCE: KAGAN WORLD MEDIA ESTIMATES |
|
|
For more News Corp. values, see ?Kagan Media Money? at www.kagan.com/cw.
Back to this issue
|
 |
